Comparative Study On Efficiency Of Public And Private Sector Banks Essay

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Comparative Study on Efficiency of Public and Private Sector banks in Peshawar: A Case Study of ABL and NBP Abstract This paper investigates the efficiency of public and private sector banks in Peshawar. For this purpose, we have taken the secondary data from income statement, balance sheet and other financial reports of banks for the year for the year 2010, 2011 and 2012.We have used ratio analysis technique on financial statements of the two banks to find out the efficiency that which sector banks is more efficient. Both banks are considered very big and important financial institution for providing services to government employee and general publics. The all ratios result reveals that ABL is more efficient than the NBP and on the basis of these findings it accepts the hypothesis that “The private sector banks are more efficient than public sector banks in Peshawar” and reject the hypothesis “The public sector banks are more efficient than private sector banks in Peshawar”. we realize in this study that the private sector banks in Peshawar have better management and control over it as compare to public sectors bank. we suggest that Investors should invest in private sector banks rather t public sector banks in Peshawar and Recommended some good suggestions for the betterment of Public sectors banks. Key words: Public and Private sectors Banks, Efficiency, Ration Analysis, ABL, NBP Introduction The word finance can be as a proxy of money, but in a real world
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